I’d just like to mention the reason why Canada even has a trade surplus with the US most of the time is due to exports of oil. Without that, we would be in a trade deficit with the US for goods and services. It therefore stands to reason that without oil, the current account between our countries would be more or less equal.
This is why focusing purely on the current account doesn’t make sense because it entirely ignores structural differences between economies.
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I’d just like to mention the reason why Canada even has a trade surplus with the US most of the time is due to exports of oil. Without that, we would be in a trade deficit with the US for goods and services. It therefore stands to reason that without oil, the current account between our countries would be more or less equal.
This is why focusing purely on the current account doesn’t make sense because it entirely ignores structural differences between economies.
The syrup must flow.